HomeMy WebLinkAboutReso 2013-073 - Redding Joint Powers Financing Authority
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RESOLUTION NO. 2013-073
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
REDDING APPROVING THE ISSUANCE BY THE REDDING
JOINT POWERS FINANCING AUTHORITY OF WATER AND
WASTEWATER REFUNDING REVENUE BONDS;
AUTHORIZING EXECUTION AND DELIVERY OF
INST ALLMENT SALE AGREEMENTS; A BOND PURCHASE
AGREEMENT; AND A CONTINUING DISCLOSURE
AGREEMENT;. APPROVING FORM OF OFFICIAL
STATEMENT; AND AUTHORIZING EXECUTION OF
DOCUMENTS AND THE TAKING OF ALL NECESSARY
ACTIONS RELATING TO THE FINANCING WITH THE
REDDING JOINT POWERS FINANCING AUTHORITY
WHEREAS, the City of Redding (the "City") and the Housing Authority of the
City of Redding (the "Housing Authority") have heretofore executed a joint exercise of powers
agreement, dated December 6, 1988, and thereafter amended (the "Joint Powers Agreement"), by
and between the City and the Housing Authority, which Joint Powers Agreement creates and
establishes the Redding Joint Powers Financing Authority (the "Authority"); and
WHEREAS, pursuant to Article 4 of Chapter 5 of Division 7 of Title 1 of the
Government Code of the State of California, the Authority is authorized to issue bonds for
financing or refinancing public capital improvements whenever there are significant public
benefits to be realized; and
WHEREAS, the City desires to approve the Authority's issuance of not to exceed
$18,000,000 aggregate principal amount of Redding Financing Authority Water and Wastewater
Refunding Revenue Bonds, 2013A Series (the "Bonds"), for the purpose of refunding the
Authority's Redding Joint Powers Financing Authority Water Refunding Revenue Bonds, 2003
Series A (the "2003 Water Bonds"), and Redding Joint Powers Financing Authority Wastewater
Refunding Revenue Bonds, 2002 Series A (the "2002 Wastewater Bonds" and, collectively with
the 2003 Water Bonds, the "Prior Bonds"); and
WHEREAS, in order to refund the Prior Bonds, the City desires to enter into a
2013 Amended and Restated Installment Sale Agreement (Water System) and a 2013 Amended
and Restated Installment Sale Agreement (Wastewater System) (collectively, the "Installment
Sale Agreements"); and
WHEREAS, the Authority and City will enter into a Bond Purchase Agreement
(the "Bond Purchase Agreement") with RBC Capital Markets, LLC (the "Underwriter); and
WHEREAS, in order to assist the Underwriter in complying with Securities and
Exchange Commission Rule 15c2-12, the City will execute and deliver a Continuing Disclosure
Agreement (Water and Wastewater) (the "Continuing Disclosure Agreement"); and
WHEREAS, there have been submitted and are on file with the City Clerk
proposed forms of the Installment Sale Agreements, Bond Purchase Agreement, Continuing
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Disclosure Agreement and an Official Statement with respect to the Bonds proposed to be issued
by the Authority, and a Trust Agreement by and between the Authority and U.S. Bank National
Association, as Trustee (the "Trust Agreement"); and
WHEREAS, the issuance of the Bonds by the Authority and the execution and
delivery of the Installment Sale Agreements will result in significant public benefits through
demonstrable savings in the effective interest rates and bond issuance costs expected to be paid
for the Bonds, and that it furthers the public purpose to assist in such financing;
NOW THEREFORE, the City Council of the City of Redding hereby finds,
determines, declares and resolves as follows:
Section I. All of the recitals set forth above are true and correct, and the City
Council so finds and determines.
Section 2. The City Council hereby approves the issuance of the Bonds by the
Authority, in an aggregate principal amount not to exceed $18,000,060, to refund the Prior
Bonds. The officers of the City is hereby directed to perform the duties, if any, imposed upon
the City by the provisions of the financing documents approved herein, including the Trust
Agreement and the Installment Sale Agreements, and the Director of Finance of the City is
hereby authorized and directed to hold the funds and accounts created in said financing
documents and directed or permitted to be held by the City.
Section 3. The proposed form of 2013 Amended and Restated Installment Sale
Agreement (Water System) by and between the City and the Authority, on file with the City
Clerk, is hereby approved. The Mayor or City Manager of the City (or other officer designated
by the City Manager) is hereby authorized and directed, for and in the name and on behalf of the
City, to execute and deliver an installment sale agreement in substantially said form, with such
changes therein as such officer may require or approve, such approval to be conclusively
evidenced by the execution and delivery thereof; provided, however, that the term of said
installment sale agreement shall end no later than June 1, 2023, and the interest rates result in a
true interest cost for the Bonds of not to exceed of three percent (3.0%) per annum.
Section 4. The proposed form of 2013 Amended and Restated Installment Sale
Agreement (Wastewater System) by and between the Authority and City, on file with the City
Clerk, is hereby approved. The Mayor or City Manager of the City (or other officer designated
by the City Manager) is hereby authorized and directed, for and in the name and on behalf of the
City, to execute and deliver an installment sale agreement in substantially said form, with such
changes therein as such officer may require or approve, such approval to be conclusively
evidenced by the execution and delivery thereof; provided, however, that the term of said
installment sale agreement shall end no later than June 1, 2023 and the interest rates shall result
in a true interest cost for the Bonds of not to exceed of three percent (3.0%) per annum.
Section 5. The proposed form of Bond Purchase Agreement, by and among the
Underwriter, the Authority and the City, on file with the City Clerk, is hereby approved. The
Mayor or City Manager of the City (or other officer designated by the City Manager) is each
hereby authorized and directed, on behalf of the City, to execute and deliver a bond purchase
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agreement in substantially said form, with such changes therein as such officer may require or
approve, such approval to be conclusively evidenced by the execution and delivery thereof;
provided, however, the underwriting discount (not including original issue discount) shall not
exceed five hundred twenty-five thousandths of one percent (0.525%) of the aggregate principal
amount of the Bonds.
Section 6. The proposed form of Continuing Disclosure Agreement, by and
between the City and U.S. Bank National Association, as trustee and dissemination agent, on file
with the City Clerk, is hereby approved. The Mayor or City Manager of the City (or other
officer designated by the City Manager) is hereby authorized and directed to and in the name and
on the behalf of the City, to execute and deliver a continuing disclosure agreement in
substantially said form with said changes therein as such officer may require or approve, such
approval to be conclusively evidenced by the execution and delivery thereof.
Section 7. The proposed form of Official Statement relating to the Bonds (the
"Official Statement"), on file with the City Clerk, is hereby approved. The Mayor or City
Manager of the City (or other officer designated by the City Manager) is hereby authorized and
directed, for and in the name and on behalf of the City, to execute and deliver an Official
Statement in substantially said form, with such changes therein as such officer may require or
approve, such approval to be conclusively evidenced by the execution and delivery thereof. The
Underwriter is hereby directed to distribute copies of the Official Statement to all actual
purchasers of the Bonds. Distribution by the Underwriter of a preliminary Official Statement
relating to the Bonds is hereby approved and the Mayor or City Manager of the City (or other
officer designated by the City Manager) hereby authorized and directed, to execute a certificate
confirming that the preliminary Official Statement has been "deemed final" by the City for
purposes of Securities and Exchange Commission Rule 15c2-12.
Section 8. The City Clerk is hereby authorized and directed to attest the signature
of the Mayor, City Manager or other officers of the City.as may be required in connection with
the execution and delivery of the Bonds and the Installment Sale Agreements, Bond Purchase
Contract and Continuing Disclosure Agreement in accordance with this resolution.
Section 9. The officers and City Council members of the City are hereby
authorized and directed, jointly and severally, to do any and all things and to execute and deliver
any and all documents and certificates which they deem necessary or advisable in order to
consummate the execution and delivery of the documents mentioned herein and otherwise to
effectuate the purposes of this Resolution and the transactions contemplated hereby.
Section 10. All actions heretofore taken by the officers and agents of the City
with respect to the refunding of the Prior Bonds are hereby ratified, confirmed and approved.
Section 11. This Resolution shall take effect from and after its adoption and
approva1.
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I hereby certify that the foregoing is a full, true and correct copy of a resolution
duly passed and adopted by the City Council of the City of Redding at a regular meeting thereof
held on the 6th day of August, 2013, by the following vote of the members thereof:
AYES:
NOES:
ABSENT:
ABSTAIN:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
Cadd, Jones, Sullivan, & Bosetti
None
McArthur
None
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RICK BOSETTI, Mayor
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FORM APPROVAL:
, ATTEST:
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PAMEL~-MI~E,'Ci y~erk
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RICHARD A. DUVERN7 Attorney
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CERTIFICATE OF THE CLERK
I, Pamela Mize, City Clerk of the City of Redding (the "City"), hereby certify that
the foregoing Resolution No. 2013-073, is a full, true, and correct copy of a resolution duly
adopted at a special meeting of the City Council of the City duly held in Redding, California, on
August 6, 2013, of which meeting all of the members of said City Council had due notice.
I further certify that I have carefully compared the foregoing copy with the
original minutes of said meeting on file and of record in my office; that said copy is a full, true,
and correct copy of the original resolution adopted at said meeting and entered into said minutes,
and that said resolution has not been amended, modified, rescinded, or revoked in any manner
since the date of its adoption, and the same is now in full force and effect.
An agenda of said meeting was posted at least 72 hours before the meeting at 777
Cypress Street, Redding, California 96001, a location freely accessible to members of the public,
and a brief general description of said resolution appeared on said agenda.
Dated: _nUO<JF/-
ft-,2013.
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